How to Challenge Tax Evasion Criminal Charges in Minnesota: A Criminal Defense Attorney Explains

Criminal charges in connection with taxes are generally charged under Minnesota Statute 289A.63. This blog posts looks at charges under subdivision 1 for failing to pay or file taxes. Gross misdemeanor charges require the government to prove “knowingly” failing to file or pay, and felony charges require the government to prove “willfully” evading paying or filing taxes.

Knowingly v. willfully

What’s the difference between knowingly? The difference between a felony and a gross misdemeanor can be massive. But many prosecutors routinely charge out every tax case as a felony assuming they can prove the willfully element. However, there is a big difference between knowingly and willfully.

Legal Background on the word “willfully”

The word willfully has its roots in the common law. As Minnesota adopted statutes in the criminal code, we abandoned most uses of the word. Part of the rationale of abandoning was that the common law’s approach to mens rea was, “often confused, unpredictable, and unprincipled.” Ted Sampsell-Jones, Mens Rea in Minnesota and the Model Penal Code, 39 Wm. Mitchell L. Rev. 1457, 1459-60 (2013). But the tax evasion statute remains an exception.

What is needed for the government to prove “willfully”?

As of the time this blog was drafted, there have been no precedential cases that have dealt with this issue. A non-precedential case, State v. Beattie, remains as the most thorough examination of the issue of what is required for willfully. But even that is of limited applicability because of the strong facts for the government. The defendant in that case had been confronted prior to criminal charges about him failing to pay certain business taxes and had responded disdainfully, “What are they going to do, fine me?” Many cases that are charged out don’t include evidence that is so blatant. The inferences to be drawn about whether the failure to pay taxes was willful or careless are often a close call. You want to hire a lawyer who is knowledgeable and experienced in litigating this very specific charge. The lack of caselaw shows how infrequently it is litigated, and why you need to be especially discerning in who you choose to hire as an attorney to defend you.

Conclusion

If you are charged with a  tax crime, contact a criminal defense attorney who is knowledgeable about tax crimes and how to fight them. Contact Subzero Criminal Defense for a free consultation. 651-248-5142